Iconic British pottery firm Denby to fall into administration due to rising costs and
- Derbyshire-based company employs more than 500 people
Pottery firm Denby will reportedly file for administration today as it struggles with rising costs.
Denby, established in 1809, will formally appoint FRP Advisory to oversee the insolvency process, Sky News reported.
It comes just five days after the firm said it had secured an additional 10-day extension to its notice of intent to appoint administrators.
The Derbyshire-based company initially filed the notice, which protects a company from creditors for a short period as it finds a buyer, administrator or enters liquidation, on 11 March.
The firm, which employs more than 500 people, will continue trading during the administration process, Sky News said, with several external parties interested in its assets.
It said it had faced ‘enormous financial challenges’ over the last three years, blaming reduced demand for its products, combined with ‘escalating’ employment and energy costs.
The 217-year-old firm launched a Save Denby campaign to save it from collapse
Denby also said it had struggled to access business funding due to ‘tighter financial markets’ and had not been able to secure a partner.
The 217-year-old firm previously launched a Save Denby campaign, encouraging people to buy more products and lobby the Government to provide support.
It is not the first time Denby has been saved from collapse, after investment firm Hilco Capital bought it out of administration in 2019.
Retailers have come under increased pressure from higher taxes and labour costs in recent months.
Earlier this year, The Original Factory Shop collapsed into administration, while LK Bennett was bought out of administration by the owner of Poundland.
The Middle East conflict is likely to add further strain to retailers because of higher energy prices and even lower consumer demand.
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